Marex, an essential tech-enabled liquidity hub connecting clients to global energy, commodity and financial markets, today posted its financial results for the year to end-December 2020.
The Group continued its positive trajectory with its seventh consecutive year of increased adjusted operating profit before taxation (PBT), as well as diversified earnings across geographies, products and clients.
The Group’s gross revenues increased 37% at $762.4 million (2019: $554.9 million), net revenues were up 18% at $414.7 million (2019: $352.2 million) and adjusted operating profit before taxation was up 15% at $61.5 million (2019: $53.4 million).
Marex closed the year with over $468 million of liquidity and increased client assets by 50% to $3.1 billion.
In March 2021, the Group renewed its $120 million revolving credit facility and completed its first acquisition of the year, Starsupply Petroleum Europe B.V., a Rotterdam-based physical energy broker. Starsupply further broadens Marex’s EU energy presence in physical markets, and the business has natural synergies across both its physical and paper Price Discovery services.
Subsequent to the year end, and following a review of the naming conventions used by staff and clients, the Group has taken the decision to simplify its name, moving from “Marex Spectron” to the shorter and crisper “Marex”. The Group has a new website at www.marex.com and deployment of the revised name will continue in the coming weeks.
Revenue growth for the first quarter of 2021 was strong compared to the fourth quarter of 2020, with positive signs in key growth businesses such as Marex Solutions, the Group’s new UK-focused equities franchise in its Market Making business and the Group’s energy execution and clearing capability in North America.
Operating profit before taxation for the first quarter of 2021 was materially above the Group’s average quarterly operating profit before taxation for the last three quarters of 2020 despite a weaker performance in March.
Given market conditions in the period since 31 December 2020, the Group expects operating profit before taxation in 2021 to be weighted to the second half of the year due to factors impacting the first half the year, including the ongoing impact of lockdowns and other COVID-19 measures on client activity, overall economic slowdowns as evidenced by lower exchange volumes and low interest rates. The Group expects the positive revenue developments in key growth businesses, coupled with cost reductions in select businesses, to lead to an increase in profitability during the second half of 2021.